Affording out-of-state tuition: 7 tips on how you could pay

Many prospective students look at out-of-state colleges because it opens up hundreds of more options, but the downside is that they usually come with a higher price tag. According to the College Board, the average tuition and fees for the 2024-2025 school year came out to be $19,710 higher at out-of-state schools than at in-state schools.

If you’re considering going to school outside your home state, it’s important to explore all the ways to get financial aid and save on tuition.

7 Tips on paying for out-of-state tuition

If you plan to attend school out-of-state, you can potentially save money through the following methods:

Tip #1: Use federal student aid

Federal aid is often the best place to start. It includes grants, work-study and loans based off of the Free Application for Federal Student Aid (FAFSA). After you fill out the FAFSA and are accepted to colleges, you will get a financial aid award letter detailing your total aid package.

Need-based federal aid

Federal student loans

These loans have fixed interest rates and flexible repayment options. They’re generally more favorable than private loans.

Borrow only what you need — federal loans have annual borrowing limits.

If you take out multiple types of loans, you can combine them under one loan using a Direct Consolidation Loan. This way, you’ll have one interest rate with one monthly payment.

Tip #2: Take advantage of regional tuition reciprocity agreements

Tuition reciprocity agreements, or tuition exchange programs, allow students to attend an out-of-state college within their region without paying out-of-state tuition. Eligibility requirements vary from agreement to agreement. Some programs require certain majors or a certain GPA, and spots may be limited, so those wanting to apply need to do so early.

Here are major programs:

To find out if your region offers a tuition reciprocity agreement, use the National Association of Student Financial Aid Administrators (NASFAA) resource page or contact your state’s education agency.

Check with your school’s financial aid office to see what tuition reciprocity agreements are available.

Tip #3: Look into state residency details

If you plan to move permanently to the state where you attend college, you may be able to establish residency to get in-state tuition.

Dependent students are typically presumed to have the same residency as their parent or legal guardian. To override the out-of-state presumption, students must show clear evidence of establishing their school’s state as their permanent residence.

Proof can include:

• State driver’s license (at least 12 months old, with no out-of-state license)
• State income tax return (filed independently)
• Lease or proof of property ownership
• Voter registration, bank accounts, utility bills or insurance records

Otherwise dependent students generally must have at least one parent who has been a state resident for at least 12 months before the student enrolls in college in that state, though this time requirement varies by state.

Independent students typically must be state residents or have a spouse who is a resident for at least a year before classes begin. These timelines and additional age requirements vary by state.

Tip #4: Ask about institutional scholarships and tuition waivers

Even if you don’t qualify for in-state tuition, you may be able to bring down your out-of-state tuition costs by going to your financial aid office and learning about scholarship and tuition waiver opportunities.

Here are three common ones:

• Merit scholarships

  These are based on GPA, SAT/ACT scores or leadership achievements. For example:

  • • University of Alabama awards automatic merit scholarships to out-of-state first-year students with high GPAs and standardized test scores. Those with a GPA of at least 3.0 and a 27 ACT or 1260 SAT score can earn anywhere from $6,000 to $28,000 a year.

  • • Montclair State University offers merit-based Presidential Scholarships to incoming first-year students, based on their high school GPA, class rank and standardized exam scores.

• Legacy scholarships

  Some schools offer legacy scholarships for out-of-state students whose parents are alumni of the school. Some examples include Seton Hall University’s Alumni Legacy Scholarship and Long Island University’s Alumni and Legacy Scholarship.

• Tuition waivers

  Tuition waivers are similar to scholarships since they lower your overall tuition charges, but they are typically granted to students with financial need. You’ll need to work directly with your financial aid office to see if you qualify.

Bankrate Loans editor Pippin Wilbers qualified for a merit scholarship that made attending school in Indiana instead of his home state of Missouri much more affordable.

Tip #5: Apply for external scholarships

Outside your school’s scholarship opportunities, you can find hundreds of niche scholarships that may align with your experience or interests. Private scholarships likely won’t provide as much funding as institutional scholarships, but stacking multiple scholarships together can bring down your cost significantly.

Using a scholarship search engine can help you find scholarships within your wheelhouse. These search engines allow you to filter results, bookmark opportunities and track application statuses.

Tip #6: Use private student loans

If federal aid and scholarships don’t fully cover your out-of-state tuition, private student loans can fill the gap.

Key things to know:

• Offered by banks, credit unions or private lenders
• Require a credit check — students often need a cosigner since they don’t typically have credit histories. 
• Terms, interest rates and repayment amounts vary by lender but are typically higher than federal loans.

Before taking out a student loan, calculate what you’d need to borrow for an out-of-state school versus an in-state one. It may not be worth it to borrow tens of thousands of dollars for an out-of-state school and have that debt follow you for a decade or more if an in-state school saves you money.

Tip #7: Explore military service and other exceptions

Some students may qualify for special tuition exemptions, including:

• No-loan schools: Some elite institutions offer financial aid without loans — especially for low-income students.
• GI Bill benefits: Veterans and active-duty military can access education benefits, including tuition support and even stipends.
• Military families, teachers and first responders: Some states offer tuition breaks for children of public servants or military personnel.

Bottom line

Looking at out-of-state colleges can expand your options — from specialized programs to unique course offerings. While these schools typically come with a higher price tag, there are ways to reduce the cost. Explore all available funding options, and reach out to the school’s financial aid office to learn what scholarships and aid programs may be available.

Frequently asked questions

• Should you consider schools where you don’t qualify for in-state tuition?

  Yes — as long as the degree program or school justifies the added cost. Out-of-state tuition can be expensive, but it may still be worth it for the right academic opportunity. You may also be able to qualify for in-state tuition later on by establishing residency. Taking time off to move, work and save money in your new state could be a strategic step before enrolling.

• Do DACA recipients qualify for in-state tuition?

  It depends on the state. Some, like California and New York, offer full access to in-state tuition and financial aid for DACA recipients. Others, like Massachusetts, may provide limited aid and benefits. Meanwhile, several states — including Alabama, Georgia and South Carolina — bar undocumented students from receiving in-state tuition at public colleges. Check the specific policies for each state and institution.

  While DACA students won’t be eligible for federal aid, they can still fill out a FAFSA for state programs, scholarships and grants.